Tax on property Income

Good Afternoon I am currently calculating tax on my rental property income and I have following questions which I need help with. 1. Can I use £1000 tax free allowance as well as claim tax reducer on Finance cost (Interest on mortgage)? 2. When I claim for tax free allowance of £1000, am I not allowed to claim for allowable expenses? 3. For mileage claim, what is the rate I apply on mileage to claim as allowable expense? Thanks

Hi,

1) Yes you can put an entry in boxes 44 and 45 but not boxes 24-29, box 30, and boxes 32 to 36.  The guidance is here:

UK property notes (2022)

2) No if you claim the property allowance you are not also allowed to claim individual expenses.  

3) Mileage expenses would go in box 29 so are not allowed when you claim the property allowance.  They can be calculated as by using the actual cost method or the fixed rate mileage

allowance.  The guidance is here:

Property Income Manual

Thank you.